Sunday, November 9, 2008

Canada says 12 dead in food poisoning

Canda says 12 dead in food poisoning.

In the August of 2008, there're 12 died in food poisoning by a bacteria named by Listeria. After an investigated, it confirmed cases of this tragedy are linked to deli meats produced at a plant owned by Maple Leaf Foods Inc.

This is an illness that particularly dangerous for pregnant, elderly, infants and people with weak immune systems and this was a contributing factor in seven of the deaths. The other five victims found out bacteria in their systems but the cause of their deaths are now still under investigation.

Maple Leaf has said it's unlikely it will be able to determine how its meat was contaminated.

Chief Financial Officer Michael Vel said he don’t know how important that is to consumers but the most important now is let them know what’s going on and take conservation action to safeguard their health.

Maple Leaf is double-checking procedures at all of its 23 plants but has no reason to believe any other products are at risk of contamination.

If Maple Leaf reimbursing customers for returned all the products and clean all he plant direct expenses will cost the company C$20 million before taxes.

On top of the company's initial cost estimate, it may face reduced sales and increased advertising costs, he said.

Maple Leaf shares closed 10% lower at C$8.80 ahead of the announcement of the latest deaths.

Vels declined to speculate on whether Maple Leaf would have any financial liability from lawsuits, but said the company has product liability insurance.

"No definitive link has been made between the listeria causing the illness and deaths, and Maple Leaf products," Vels told analysts.

But a lawyer known for aggressively pursuing class action lawsuits, including against tainted pet food maker Menu Foods Income Fund , said his firm will take action against Maple Leaf.

"It's apparent, immediately, that the company has been downplaying the significance of what's going on," Tony Merchant said in an interview with CTV News.





http://tvnz.co.nz/view/page/425826/2036537

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